Dhani Loans & Services Ltd. vs ACIT

Parties Involved

Facts Summary

The assessee company filed its return of income on 10.03.2022, declaring total income of INR 1,68,94,31,551/-. The case was selected for scrutiny and after considering the submissions made by the assessee, the assessment order was passed accepting the income declared. Thereafter, Ld. PCIT invoked the provision of section 263 of the Act by observing that the assessee has claimed deduction of INR 8,89,17,450/- being 5% of the total income as u/s 36(1)(viii)(c) of the Act and simultaneously, debited a sum of INR 1,53,93,44,681/- under the head provision for bad and doubtful debts. Ld. PCIT thus, was of the view that assessee has not disallowed the amount of provision and has not claimed the deduction u/s 36(1)(vii)(ac) as per law therefore, allowing such incorrect claim is an error which leads the assessment order erroneous and pre-judicial to the interest of Revenue and issued show case notice on 11.02.2025.…

Legal Issues

• 1. Excessive claim of bad debts u/s 36(1)(viia) of Rs.146,68,23,319/-

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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